Title: A Spatial Investigation of σ-Convergence in China
Abstract: Using techniques of spatial econometrics, this paper investigates σ-convergence of provincial real per capita gross domestic product (GDP) in China. The empirical evidence concludes that spatial dependence across regions is strong enough to distort the traditional measure of σ-convergence. This study focuses on the variation of per capita GDP that is dependent on the development processes of neighboring provinces and cities. This refinement of the conditional σ-convergence model specification allows for analysis of spatial dependence in the mean and variance. The corrected measure of σ-convergence in China indicates a lower level of dispersion in the economic development process. This implies a smaller divergence in real per capita GDP, although convergence across regions is still a challenging goal to achieve in the 2000s. Keyword: σ-convergence, Moran’s index, spatial dependence, spatial lag.
Publication Year: 2006
Publication Date: 2006-03-01
Language: en
Type: preprint
Access and Citation
Cited By Count: 10
AI Researcher Chatbot
Get quick answers to your questions about the article from our AI researcher chatbot